The latest motor premium insights from Pearson Ham for you;
The latest Quarterly Insurance Price Index (Q2 2023) from Pearson Ham Group has found significant motor and home insurance price increases in the last quarter, with drastic impacts to premium pricing in comparison to a year ago. Car insurance prices have risen by over 14% in the last quarter with price increases taking place every month. The culmination of motor insurance price increases over the year has resulted in the most competitive car insurance prices now being almost 30% higher than last year.
Both the quarterly increase of 14% and a year on year increase of 30% in car insurance pricing are the largest quarterly and yearly increases since the Index began in its current format in 2019. For the home insurance market, prices for combined buildings and contents home insurance increased by 7.6% in the second quarter of the year. Most of the premium inflation seen in the last year (12 months) for home insurance took place in the last six months and prices are now around 21% higher than last year. Whereas for contents only cover, the most competitive prices quoted are around 11% higher compared to last year.
Stephen Kennedy of Pearson Ham Group, said:
“Double digit price increases for car insurance in Q2 have meant that premiums are almost 30% higher than last year, the highest yearly increase we have seen. There’s also a significant acceleration in home insurance pricing meaning that premiums are now over 20% higher than last year for combined buildings and contents cover.
“The reasons behind this significant increase are due to the soaring cost of claims but pricing growth of almost a third will undoubtedly intensify the level of scrutiny applied to insurers. Especially as indicators suggest that the trend of rising premiums will continue, at least in the short term.”
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